Capital Raising PresentationGary Phillips CEO

Monday 6 August 2018

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Forward looking statement

This document contains forward-looking statements, including statements concerning Pharmaxis’ future financial position, plans, and the potential of its products and product candidates, which are based on information and assumptions available to Pharmaxis as of the date of this document. Actual results, performance or achievements could be significantly different from those expressed in, or implied by, these forward-looking statements. All statements, other than statements of historical facts, are forward-looking statements. These forward-looking statements are not guarantees or predictions of future results, levels of performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results to differ materially from those expressed in the statements contained in this document. For example, despite our efforts there is no certainty that we will be successful in partnering our LOXL2 program or any of the other products in our pipeline on commercially acceptable terms, in a timely fashion or at all. Except as required by law we undertake no obligation to update these forward-looking statements as a result of new information, future events or otherwise.

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Capital Raising Overview

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Pharmaxis is raising A$24.0m at A$0.325 per share via a Two Tranche Placement

Two Tranche Placement to sophisticated and professional investors

– Tranche 1 raising A$12.4m under existing placement capacity pursuant to ASX Listing Rule 7.1

– Tranche 2 raising A$11.6m subject to a shareholder approval

– A$0.325 issue price represents a 3.1% premium to the last closing price of A$0.315

Use of funds

– Strengthen balance sheet to assist with LOXL2 partnering negotiations expected to occur in 2H18. A$54m pro-forma cash balance (30 June 2018 post raising)

– Further investment in pre-clinical programs

– General working capital and capital raising costs

Strong support from new and existing substantial shareholders

– Arix Bioscience PLC a specialist global biotech investor committing A$14.2m to take a 11.1% stake post capital raising

– BVF Partners LP committing A$7.0m to increase their shareholding to approximately 22.9% of company post capital raising

Capital Raising Timetable

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*The timetable above is indicative only and may be varied subject to the ASX Listing Rules

Trading halt Friday 3 August 2018

Placement announced and Company resumes trading Monday 6 August 2018

Settlement of issue of Placement Shares under Tranche 1 Monday 13 August 2018

Allotment of issue of Placement Shares under Tranche 1 Tuesday 14 August 2018

Special Meeting for approval of issue of Placement under Tranche 2 On or around Mid September 2018

Settlement of Placement under Tranche 2 (subject to approval) On or around Mid September 2018

Allotment of Placement under Tranche 2 (subject to approval) On or around Mid September 2018

An indicative timetable for the capital raising is provided below

Business Overview

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Value Generation

• Extensive Big Pharma network

• Seek to partner after phase 1 or 2 to realise value and mitigate program and corporate risk

Drug Discovery

Engine•Leverage small molecule expertise

and in house chemistry platform•Efficiencies from global academic &

CRO networks

•Target high value diseases with validated targets

Clinical Trials

• Utilise global experience and extensive clinical networks to execute value adding Phase 1 and 2 clinical trials

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Pharmaxis has a successful track record of research, development and commercialisation of human healthcare products for the treatment and management of fibrotic and inflammatory diseases

Pharmaxis overview

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A globally recognised leader in drug development for fibrosis & inflammation

A chemistry platform that has delivered a pipeline of oral small molecule drugs in preclinical and clinical development in diseases with large markets and high unmet need

A globally respected translational development team delivering best in class drug development programs with international standard data packages

A proven track record of achieving global partnering deals with multinational Pharmaceutical companies

$83m received to date from benchmark deal concluded with Boehringer Ingelheim in 2015 and worth a potential $600m+ in development milestones for two indications (NASH and diabetic retinopathy) plus sales related payments (% and milestones)

Commercial partnering process for phase 1 anti fibrotic LOXL2 inhibitor program expected Q4 2018

Growing revenues from approved product sales (26% increase for FY 2018 to A$6.1m) & milestones (A$42m FY 2018)

Strong balance sheet - A$31m cash at June 2018

Purpose built manufacturing and research facility in Sydney

Strong institutional share register; including offshore specialist biotech funds

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Senior management Significant experience in drug development, commercialisation and partnering

Gary Phillips – CEO more than 30 years of operational management

experience in the pharmaceutical and healthcare industry in Europe, Asia and Australia

joined Pharmaxis in 2003 and was appointed Chief Executive Officer in March 2013 at which time he was Chief Operating Officer

previously held country and regional management roles at Novartis – Hungary, Asia Pacific and Australia

Wolfgang Jarolimek – Drug Discovery more than 18 years’ experience in pharmaceutical drug

discovery and published more than 30 peer reviewed articles.

previously Director of Assay Development and Compound Profiling at the GlaxoSmithKline Centre of Excellence in Drug Discovery in Verona, Italy

spent 8 years as post-doc at the Max-Plank Institute in Munich, Germany; Baylor College of Medicine, Houston, Texas; Rammelkamp Centre, Cleveland Ohio; and University of Heidelberg, Germany

David McGarvey – CFO more than 30 years’ experience building Australian based

companies from inception to globally successful enterprises

joined Pharmaxis as Chief Financial Officer and Company Secretary in December 2002

previously Chief Financial Officer of the Filtration and Separations Division of US Filter (1998-2002), and MemtecLimited (1985-1998)

commenced career at PriceWaterhouseCoopers

Kristen Morgan – Alliance Management responsibility for alliance management and medical and

regulatory affairs

more than 19 years’ experience in the pharmaceutical industry having previously held a senior role in medical affairs at Sanofi-Aventis, and a commercial sales role at GlaxoSmithKline.

Brett Charlton - Medical more than 25 years experience in clinical trial design and

management

author of more than 80 scientific papers

founding Medical Director of the National Health Sciences Centre

previously held various positions with the Australian National University, Stanford University, the Baxter Centre for Medical Research, Royal Melbourne Hospital, and the Walter and Eliza Hall Institute

Non Executive Directors Malcolm McComas – Chair

– former investment banker at

Grant Samuel

Kathleen Metters

– former head of worldwide basic

research at Merck

– former CEO of biopharmaceutical company Lycera Corp.

Will Delaat

– former CEO of Merck Australia

– former chair of Medicines Australia

Simon Buckingham

– former President Global Corporate and Business Development at Actelion

Read more on the Pharmaxis website

Indication DiscoveryLead

OptimisationPre

ClinicalPhase I Phase II Phase III Marketed

Commercial

Bronchitol® US Cystic fibrosis

Bronchitol RoW Cystic fibrosis Direct & Dist

Aridol® Asthma diagnosis Direct & Dist

In the clinic

SSAO (PXS-4728A) NASH

SSAO (PXS-4728A)Diabeticretinopathy

LOXL-2NASH, fibrosis -liver, lung, kidney, heart

Preclinical

SSAO/MPO Inflammation

LOX - oral Cancer

LOX – topical Scarring

Pharmaxis portfolio

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Phase 3 trial met primary endpoint in 2017. Chiesi planning to file with FDA Q4 2018. Subject to FDA approval, US partner Chiesi will launch commercially in the US.

Bronchitol is currently sold in the UK, Germany and Italy by Chiesi; some other European countries and Russia by specialist distributors and by PXS in Australia and smaller countries

Aridol is approved and sold in Australia, South Korea and a number of European countries. Scheduled to re-enter US market in CY 2018 with specialist distributor and Canada in 2019.

Sold to Boehringer Ingelheim in May 2015. Phase 2a trial commenced August 2017. PXS received payments of A$68m to date.

Phase 1 trials in 2 compounds. Both compounds are proceeding to Phase 1 multiple ascending dose stage. Reporting Q3/Q4 2018. Commercial partnering process Q4 2018.

Anti-fibrotic. Commenced pre-clinical tox studies Q4 2017.

Dual inhibitor anti-inflammatory. Commenced pre-clinical tox Q4 2017.

Boehringer commenced dosing a Phase 2a trial in January 2018. PXS received A$15m to date.

Anti-fibrotic. Effective in scarring models.

Progress in last 12 months

A pipeline of drugs for inflammation and fibrosis

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Pharmaxis has developed a commercial pipeline of small molecule drugs against high value targets

Key areas of current focus:• NASH/liver fibrosis – SSAO and LOXL2• Diabetic retinopathy (DR) - SSAO• Pulmonary fibrosis (PF) – LOXL2Other active programs:• Pancreatic cancer & myelofibrosis – LOX (oral)• Scarring – LOX (topical)• Inflammatory bowel disease – SSAO/MPO• Respiratory – SSAO/MPO

Pharmaxis Drug Discovery

Pharmaxis has developed a commercial pipeline of small molecule drugs for inflammation and fibrosis

Amine oxidase enzymes are well validated as targets in diseases with a high unmet medical need

Pharmaxis are global leaders in amine oxidase enzyme inhibition

Pharmaxis developed IP

Since 2015 the platform has delivered:

1 compound in 2 x phase 2 trials (SSAO)

2 compounds completing phase 1 trials (LOXL2)

2 compounds in preclinical development approaching the clinico SSAO/MPO o LOX (oral)

LOXL2 LOX

SSAO

Chronic Inflammation

MPO

Targeting multiple different pathways

Key catalysts targeted for 2018/2019

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Pharmaxis value driving events

1. LOXL2 anti fibrotic program

Phase 1 trials final stage to complete Q3 2018

Phase 2 enabling toxicity studies to report H2 2018

Partnering process commenced - to run through Q4 2018.

2. Boehringer Ingelheim acquired SSAO inhibitor (BI 1467335) to report clinical proof of concept in two major diseases as Phase 2 trials report in H1 2019

3. Two additional programs to enter the clinic

LOX (oral) for pancreatic cancer and myelofibrosis to start phase 1/2a clinical study H1 2019

SSAO/MPO combo to complete pre-clinical development in H1 2019

4. Others

Bronchitol FDA re-submission by Chiesi in Q4 2018

Other internal programs developing additional compounds to take into preclinical development

Evaluating opportunities for in-license or acquisition of new programs in fibrosis and inflammation that leverage PXS research and commercialisation capabilities

LOXL2 inhibition programfor NASH, IPF & other high value fibrotic diseases

Potential indications / market size: NASH / Liver Fibrosis; $35b1

Pulmonary fibrosis (IPF); $3.5b2

Kidney fibrosis Cardiac fibrosis

LOXL2 and fibrosis: LOX family of enzymes are the final step in the fibrotic

disease process Pharma supported research clearly associates

increased levels of LOXL2 with disease progression in IPF, NASH and cardiac fibrosis

Competitive profile: Novel target and mechanism of action Once daily oral drug Best in class drug with high level inhibition of LOXL2

enzyme for 24 hours from one dose. Only known drug in clinical development to inhibit

LOXL3 Place of LOXL2 at the end of the fibrotic cascade

provides opportunity to use in combination with other Pharma pipeline drugs

Significant marketopportunity

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Fibroblast cells in human tissue

Collagen fibres Excessive ‘cross-linking’ of collagen fibres, stiffens tissue, causing fibrosis

LOXL2(from fibroblasts)

Excessive production and linking of collagen fibres results in fibrosis

Fibroblast cells in human tissue

1. Deutsche Bank market forecast for 20252. iHealthcareanalyst. Inc market forecast for 2021

LOXL2 inhibitor program

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Feature What Pharma values PXS program status

Disease target Independent validation Multiple peer reviewed publications

Pre clinical proof of concept

2 or more different supportive animal models

Multiple supportive models across 5 different diseases. Further studies in progress

Dosing regimen Ease of use Oral once a day tablet or capsule

Patent Composition of matterAs long as possible

Composition of matter2016 filing date; 100% PXS owned

Cost of Goods Low Small molecule with easy synthesis

# Compounds 1 plus backups 2 compounds in clinical development plus back ups

Toxicity Wide therapeutic windowAs long as possible

28 day tox studies complete13 week studies (2 species) in progress – report H2

Clinical phase Phase 1 with target engagementPhase 2 ready

First stage for both compounds complete, proceeding to second stage – complete Q3/Q4 2018.Manufacture of drug quantities (commence H2 2018) for rapid partner start of phase 2

Target engagement Drug inhibits target High levels of inhibition for 24 hours from a single dose

approaches “deal ready” status

LOXL2: Phase 1 Study in 2 compounds

Both compounds were well tolerated and

cleared for progressing to MAD2 stage

Pharmacokinetic parameters of both

compounds increased with ascending dose

Target engagement assay indicated that both

compounds inhibited LOXL2 in a dose-related

fashion.

24 hour inhibition is achieved with a single dose.

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Positive safety and PK/PD findings in SAD1 Phase 1 trials

1. Single Ascending Dose (SAD): single oral doses of different strengths were trialled in healthy volunteers2. Multiple Ascending Dose (MAD): different fixed doses are given in healthy volunteers for 14 days

Dose dependent increase in Cmax and AUC

Some accumulation occurred between Day 1 and Day 7 as expected from T1/2

No further PK changes between Day 7 and Day 14

PK properties are as predicted from SAD data

Target engagement data are very reproducible (Day1 data are identical to SAD)

Accumulation of compound over days increases plasma concentration and target engagement

400mg daily dose causes >80% inhibition of the LOXL2 enzyme over 24 hrs

Preliminary MAD2 data from one compound

Pharmacokinetics of one compound in SAD stage – 3 of 6 doses tested

LOXL2 inhibitor program – partnering process

Pharma company interest driven by search for: Inhibitor to LOXL2 and LOXL3 enzymes, Effective anti-fibrotic drug, and/or Drugs to complement existing disease portfolio – lung, liver, kidney, heart,

etc.

Pharmaxis engagement with multiple potential partners on planning and progress of the LOXL2 program for over 2 years

Pharmaxis data packaging will complete over Q3 & Q4, including: Second stage of phase 1 trials for both compounds 13 week tox studies (2 species) for both compounds Additional disease models

Data room has been available (under CDA) since Q4 2017

Commercial partnering discussions expected Q4 2018

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Positive engagement with pharma companies

NASH

Expected to become leading cause of liver transplant by 2020

No approved treatments

Diabetic Retinopathy

Affects ~95 million people worldwide

No approved treatments for early stage disease

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SSAO (Boehringer Ingelheim): Pharmaxis poised to be a major player in diseases caused by complications of diabetes

Two diseases with high unmet need and large patient populations in Phase 2 studies

NASH

Phase 2a trial expected to report H1 2019 – proof of efficacy in patients with moderate – severe disease

Deutsche Bank estimate market size of US$35b by 2025

First in class anti inflammatory SSAO inhibitor for NASH with peak sales potential of ~US$2b [Analyst’s estimate]

Diabetic Retinopathy

Phase 2a SSAO diabetic retinopathy expected to report H1 2019 – proof of efficacy in patients with early stage disease

Affects one third of diabetic patients world wide

No approved treatments for early stage disease

First in class anti inflammatory SSAO inhibitor for DR with peak sales potential of ~US$800m[Analyst’s estimate]

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SSAO: Phase 2 trials to show clinical proof of concept in H1 2019Boehringer Ingelheim responsible for clinical development and commercialisation

SSAO: Boehringer Ingelheim deal

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Deal structure illustrates value generating potential of Pharmaxis business model

Commencement of phase 2

€18m

Commencement of phase 3

€37m

Filing, regulatory & pricing approvals

€140m

Commencement of phase 2

€10m

Commencement of phase 3

€25m

Filing, regulatory & pricing approvals

€160m

First indication (NASH)

Second indication (diabetic retinopathy)

Upfront

(2015)

€29m

Total Potential Milestones

€419 (~A$625m)

PLUS earn-out payments on annual net sales• Tiered percentages

increasing from high single digits

• Plus sales milestones

• €57m (A$83m) already received • No further investment required from Pharmaxis

More programs approaching the clinic

Program LOX (oral) Combo SSAO/MPO

Indication Severe fibrotic indications: pancreatic cancer myelofibrosis

Inflammatory bowel disease Respiratory disease

Commercialisation Partner after phase 2 Partner after phase 2

Status Commenced pre-clinical tox Q4 2017

Effective in animal models ofpancreatic cancer and myelofibrosis

Commenced pre-clinical development Q4 2017

Ongoing evaluation in various models of inflammation

Next steps2018/2019

Additional animal models of pancreatic cancer and myelofibrosis

Complete preclinical 28 day tox(H2 2018) and 3 month tox (to permit fast track to phase 2a)

Commence phase 1a (H1 2019) Commence phase 1b/2a

Readouts from ongoing studies in various disease models of inflammation

Determine target indication in conjunction with SAB

Complete preclinical 28 day tox Commence phase 1

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Pharmaxis purpose built facility

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Pharmaxis has a purpose built manufacturing and drug development facility in Sydney

Manufacturing and research facilities

Productive R&D drug discovery engine

Team of 15 scientists specialising in amine oxidase chemistry drug discovery and pre clinical development

Capability to run global clinical trials

Manufacturing and exporting approved products:

Bronchitol®

Aridol®

Capacity for future growth

Cystic fibrosis

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Business model - USBronchitol

Active ingredient mannitol delivered as an inhalable dry powder

Restores airway surface liquid

Mucus clearance enhanced

Improves lung function

Reduces incidence of lung infections

Business model - RoW

Bronchitol for cystic fibrosisOverview

Phase 3 trial (CF303) reported June 2017

Chiesi responsible for regulatory filing & commercialisation –preparing for launch

File updated NDA - Q4 2018

~A$13m milestone payment on launch

PXS supplies US market from Sydney factory

PXS receives high mid teens % of in-market sales plus cost of goods

Distributors responsible for promotion & support

– Chiesi in UK, Germany, Italy & Ireland

– Other distributors in Russia, Eastern Europe, Middle East

– PXS revenue share ~50%

– Russian reimbursement decision H2 2018

PXS direct in Australia and smaller markets

Patients

– US: 30,000;

– Europe: 37,000;

– Russia: ~10,0001

– Australia: 3,500

– Total world: ~100,000

Disease characterised by poorly hydrated, tenacious, thick mucus

Inexorable decline in lung function

Frequent infections

1. Estimates vary from 7,000 to 30,000

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Shareholders & trading

Financial Information

ASX Code PXS

Market Cap1 $101m

Shares on Issue 320m

Employee Options1 17m

Liquidity (turnover last 12 months)1 71mshares

Share price1 $0.315

Analyst valuation2 $0.52

Cash Balance (30 June 18 Pro Forma Post Capital Raising)

A$54m

Institutional Ownership3 %

BVF Partners (US) 22%

Australian Ethical 9%

Allan Gray 6%

Montoya Investments (UK) 6%

Other Institutions 8%

Total Institutional Ownership 51%

1. As at 2 August 20182. Bell Potter Securities Research 30 April 20183. Prior to completion of the Placement

Financials highlights

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1. Refer slide 27 for additional detail2. Refer slide 26 for additional expenditure detail 3. 2018 includes $9.6 million in relation to changes in a collaboration agreement4. Refer to June 2018 Quarterly Shareholder Update for additional financial information

A$’000 Three months ended Twelve months ended

(unaudited) 30-June-18 30-June-17 30-June-18 30-June-17

Income statements

Sales of Bronchitol & Aridol 1,900 866 6,094 4,823

Milestones from sale of drug - - 42,130 -

Total revenue 2,213 6,945 50,831 18,001

Total expenses (9,857) (11,057) (44,413) (36,347)

Net profit (loss) after tax (7,645) (4,112) 6,428 (18,346)

Segment results – adjusted EBITDA

Bronchitol & Aridol 1 (1,198) (2,421) (3,786) (7,100)

New drug development2 (3,683) 199 28,771 (4,114)

Corporate3 (947) (1,005) (13,466) (4,017)

Total (5,827) (3,227) 11,519 (15,231)

Statement of cash flows

Cash inflow/ (outflow) from:

Operations (2,712) (4,228) 12,206 (15,262)

Investing activities (280) (328) (884) (723)

Financing activities (443) (434) (1,753) (1,721)

Total cash generated/(used) (3,435) (4,990) 9,569 (17,606)

Cash at bank 31,073 21,504 31,073 21,504

New Drug Development

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Drug development and clinical trial expenditure by pipeline project

Current status/planned expenditure

LOXL2:

2 compounds in phase 1 – will complete H2 2018

13 week tox for both compounds

GMP material for rapid phase 2 start by partner

Other preclinical studies to report Q3/Q4 2018

LOX (oral) in preclinical

Disease models – cancer

GLP tox – 1 month & 3 month

GMP material – for phase 1a/2a clinical trials

Plan to start phase 1/2a CY 2019

SSAO/MPO in preclinical

Disease models - ulcerative colitis

GLP tox – 1 month

GMP material for phase 2 clinical trials

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2016 2017 2018

$’0

00

New Drug Development Expenses

Employee costs Other core costs LOXL2 LOX SSAO/MPO Other programs

Path to profitability: increase revenue to leverage cost base Core cost base relatively fixed vs sales volume Reimbursement of Bronchitol in Russia key to rate of overall sales growth -

decision Q3 2018 US approval – Subject to FDA approval (~Q3 2019), launch Q4 2019

(US$10m milestone) Aridol planned to re-launch in US Q4 2018 with specialist distributor. FDA

inspection of factory Q3 2018 Other Bronchitol sales growth opportunities Continued growth in major Bronchitol launched markets – UK, Germany &

Australia Growth in other Bronchitol markets: Italy, Spain, CZ, Ireland Aridol in Canada – target launch Q3 2019

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Revenue

2015: Direct to pharmacy until June 15 (ie all sales revenue to PXS)

2016: EU sales via distributors at lower margin (`50%) to PXS. Chiesi builds inventory levels

2017: First sale to Russia ($640k)

2018: Growth in EU (Chiesi UK & Germany) & Australia (expanded PBS coverage)

Other revenue in all years is predominantly reimbursement of clinical trial costs by US partner

Bronchitol & AridolSegment profitability

-30,000

-20,000

-10,000

-

10,000

20,000

2015 2016 2017 2018

$’0

00

Bronchitol & Aridol EBITDA

Sales Other revenue Expenses

Clinical EBITDA

-1,000

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2015 2016 2017 2018

$’0

00

Sales

Aridol Bronchitol - EU Bronchitol - Australia

Bronchitol - RoW Bronchitol - Russia

Balance sheet – 30 June 2018

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Finance lease over 20 Rodborough Rd (to 2024)

NovaQuest financing – not repayable other than as % of Bronchitol revenue

Cash $31.1

Accounts receivable

$1.8

PP&E $12.5 Inventory$2.4 Other $2.4

Assets ($50m)

Finance lease$8.3

NovaQuest financing

$22.8

Accounts payable $2.1

Other $5.9

Liabilities ($39m)

Summary

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Pharmaxis is a global leader in drug development for fibrosis & inflammation

Pharmaxis have built a successful platform of small molecule drugs targeting high value fibrotic and inflammatory indications

Development pipeline across various stages - one drug in two phase 2 trials, one drug program (two compounds) in phase 1 trials, two compounds in pre-clinical development approaching the clinic, additional drug candidates in discovery.

Proven track record of early stage partnering and taking products through to commercialisation

Potential to receive total up front and milestone payments of A$625m plus further sales based payments from first deal (SSAO) – A$83m already received

Next drug completing phase 1 trials and long term toxicity studies: partnering deal planned Q4 2018

Strong balance sheet - $31m at June 2018

Numerous catalysts over the next 18 months

Pharmaxis Ltd20 Rodborough Road

Frenchs Forest NSW 2086Australia

T: +61 2 9454 7200www.pharmaxis.com.au

Gary PhillipsChief Executive Officer

gary.phillips@pharmaxis.com.au

David McGarveyChief Financial Officer

david.mcgarvey@pharmaxis.com.au